Etters Manufacturing Company has provided the following financial data for its most recent month.

Unit Selling Price $18

Units in beginning inventory 0

Units produced 10,000

Units sold 9,500

Variable costs per unit:

Direct materials $6

Direct labor $4

Manufacturing overhead $3

Selling and administrative costs $1

Fixed costs:

Manufacturing overhead $12,000

Selling and administrative costs $8,000

a) Prepare an income statement using an absorption costing format in good form.

b) Calculate the net income that would result if Etters Manufacturing Company prepared a variable costing income statement. You dont have to prepare a complete statement, just calculate the net income. Show your work.